US TPC Group agrees higher offer from SK Capital, First Reserve

HOUSTON (ICIS)--TPC Group has agreed to an increased takeover offer from private equity firms SK Capital and First Reserve, the US-based butadiene producer said on Thursday.

TPC said that SK Capital and First Reserve raised their cash offer by 12.5% to $45.00/share. The firms' original $40.00/share offer from August was worth about $850m (€663m) in total, including net debt.

TPC’s board recommends that shareholders vote in favour of the higher offer at a meeting scheduled for 5 December, the company added.

TPC also said that following its agreement to the higher offer from SK Capital and First Reserve it ended negotiations with chemicals firm Innospec and private equity firm Blackstone.

Last month, Innospec submitted a non-binding proposal to acquire all of TPC’s common stock for an all-cash purchase price in the range of $44-46/share, with financing to be provided by Blackstone.